Research On The Risk Of Merger Integration And Prevention Countermeasures Of TCL Purchasing Alcatel

With the change of global economy and the rapid development of economy, Merger& Acquisition(M&A) is no longer confined to the developed countries, a growing number of developing countries and regions has joined in the big wave of M&A.Transnational merger and acquisition has become an important form of rapid capital expansion for an enterprise. As an important member of the global economic system, along with the development of the reform and open policy of our country, more and more companies in our country participated in the transnational merger and acquisition.Although a large number of M&A has happened every year at home and abroad, the success ratio of M&A is not high. Statistical results of several institutionss at home and abroad show that, the success rate of M&A is only 20% to 50%. Throughout the whole process of mergers and acquisitions, there are many reasons for the failure of M&A. The main cause of the failure of M&A is the failure of integration after M&A. Many enterprises in China attached great importance to mergers and acquisitions and ignored the integration management operation in transnational merger and acquisition, which always lead to the failure of M&A eventually. In order to improve the success rate of Chinese enterprises transnational merger and acquisition, as well as get the expected effects of M&A, research Chinese enterprises' transnational merger and acquisition integration risks and preventive measures is of great significance.This thesis provides theoretical basis for the whole article through systematical review of previous literatures of the transnational merger and acquisition, mergers and acquisitions integration, integration risks. This article studys the case of TCL acquired Alcatel, at firt it states the basic situation of TCL and Alcatel, then introduces the process of TCL acquires Alcatel, including the reason of M&A and the result of M&A. Then it analyzes the failure reason in integration from strategic integration, organizationintegration, human resource integration, cultural integration. Finally, for the risks which TCL has encounted in integration, it puts forward the corresponding risk prevention measures, including establish integration team, formulate and improve the integration plan and integration properly and quickly; establish communication channels, formulate appropriate personnel appointment system and the compensation incentive system as soon as possible; correctly understand the cultural differences and do not promote a strong culture; take reasonablely adjustment of organization structure, reform the management system step by step; make full self evaluation, formulate reasonable development strategy,appropriate choice of the mode of integration.